Angang Steel Company (347) Q3 2024 earnings summary

Executive summary

• Operating income for the nine months ended 30 September 2024 was RMB 79,261 million, down 7.78% year-over-year.

• Net loss attributable to shareholders was RMB 5,084 million, a significant increase from a loss of RMB 2,113 million in the prior year period.

• The company faced a sharp decline in steel settlement prices, which outpaced the drop in raw material costs, further narrowing profit margins.

Financial highlights

• Operating income for Q3 2024 was RMB 23,812 million, down 7.99% compared to Q3 2023.

• Net cash flows from operating activities for the nine months were negative RMB 313 million, compared to positive RMB 2,879 million last year.

• Basic and diluted EPS for the nine months were both -0.542 RMB, compared to -0.225 RMB year-over-year.

• Total assets as of 30 September 2024 were RMB 98,898 million, up 1.43% from year-end 2023.

• Owners' equity attributable to shareholders decreased by 9.37% to RMB 49,632 million.

Outlook and guidance

• The company continues to face margin pressure due to weak steel prices and market downturn.

• Deferred income tax expense increased due to uncovered losses, impacting net results.